Comments on: Has a new long-term bull market begun? http://blogs.reuters.com/anatole-kaletsky/2013/05/09/has-a-new-long-term-bull-market-begun/ Sat, 03 Jan 2015 16:42:55 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: objectiveknow http://blogs.reuters.com/anatole-kaletsky/2013/05/09/has-a-new-long-term-bull-market-begun/#comment-948 Tue, 14 May 2013 23:05:46 +0000 http://blogs.reuters.com/anatole-kaletsky/?p=343#comment-948 An excellent post. I agree with everything said bar one.

Basically the comment by Niko_M is an important comment and the one that I would have made with one addition.

You are correct to regard chartism as a pseudo-science. There would certainly be no investment risk if there was any value in chartism. It is simply the best hook there has ever been to beguile Joe Sucker and a favourite with Reuter’s market commenters with their moving averages. But you cnnot hve it both wys.

It is either rubbish or the basis of your prediction.

But given that chartism is rubbish we must look for another reason why equities are rising. And the nswer lies with Niko_M, easy money and the “moneytorist rule”, liquidity preceeds output by six months.

Equities will continue to rise whilst Ben Benankie and co continue to add $85b per month to liquidity. And this will continue until the unemployment rate is reduced to 6.5%. And we know that there will be no sudden change to this strategy because of the parallel strategy of monetary policy stability in an effort to recover confidence and remove “fear itself” from the equation.

We are therefore in a peerless sitution where we can have complete confidence that the bull will continue to run until the end of the year.

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By: Niko_M http://blogs.reuters.com/anatole-kaletsky/2013/05/09/has-a-new-long-term-bull-market-begun/#comment-947 Mon, 13 May 2013 01:53:31 +0000 http://blogs.reuters.com/anatole-kaletsky/?p=343#comment-947 During previous breakouts periods the federal funds rate was not held below .5% for years at a time, or while unprecedented quantitative easing programs were undertaken to repair bank balance sheets. Before we make any judgements on a long term bull market, we need wait until the Federal Reserve changes its cheap money policies.

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